Best Loans for Credit Repair

Best Loans for Credit Repair
Best Loans for Credit Repair

Best Loans for Credit Repair

It’s never easy to get a great loan with low interest when you have bad credit. However, it is necessary to get some sort of line of credit in order to build credit. The task can seem daunting because you need credit to get credit, but it isn’t impossible. Here are some of the best ways to quickly build your credit line listed below:

Store Credit Cards

Did you know that many store credit cards don’t require anything more than an income? Some don’t even conduct a soft credit inquiry. Montgomery Wards and other stores like it offer online lines of credit. You can’t use the credit line in a brick-and-mortar store, but you can shop online. Just be careful to keep your purchases small so you only use part of your credit line.

Auto Loans

Don’t let Buy-Here-Pay-Here gimmicks fool you. Most of them don’t report to the credit bureau. Instead, look to lenders outside of the auto industry. Most lenders are willing to take a risk if you have the collateral, which includes a vehicle. Places like One Main offer high-interest loans even if you have poor credit. The key is to pay them off quickly so you can avoid the high interest rates. And, keep those interest rates in mind as you build your credit, because the worse it is, the higher your interest is.

Online and Catalog Retailers

Fingerhut is one of the most popular catalog retailers, and they are more than willing to provide a line of credit. You may have to put down a small deposit, but almost anyone can open an account with them. They report to the credit bureau, so it’s a quick and easy way to start adding points to your credit score.

Credit-Building Habits for Die-Hard No Credit Card People 

Now that we’ve covered building credit with bad credit, it’s time to look at those who have no credit history at all! Do you hate credit cards? You’re not alone! But guess what. We’re going to take you a step further and show you how to build credit without having a credit card. Sounds impossible? Well, just watch and learn. One of the most important aspects of building credit is developing the right financial habits.

  • Be diligent in paying back your loans: One of the most important factors that affect your credit score is your payment history. It is important to be very attentive in paying all your debts. It’s just like school all over again. You do your homework on time, submit all the assignments, and the teacher gives the full grade. It’s the same with your credit score. What you also need to pay attention to is how much progress you have made in settling all your loan expenses. The closer your loan is to zero, the better it is for your credit score. It’ll be easier for you to get loans in the future.
  • Boost Your Credit Score with Installment Loans: Don’t have a credit card or have any credit history at all? An installment loan can do the trick! Whether the loan is for your house, your car, or your education, just get that loan so you can have history and build an actual record. Remember to focus on credit-building loans rather than the traditional ones. At least, you will be able to enjoy the benefits of having a car or pursuing your education while building a credit score. That by itself will open more doors for you in the future.
  • Get Involved in Nonprofit Lending Circles: A very innovative way of approaching credit score enhancement is through partaking in organizing lending groups. This is a great way that communities use to help each other build credit. One example that you should really look into is the Mission Asset Fund, which is a widely recognized nonprofit lending circle. They’re great for building credit.
  • Make Sure Your Bills Added To Your Credit Report: What’s most important is that your efforts have to pay off. Though your payments may be on time, credit bureaus may not see that to take into account your credit score. That’s where Experian Boost can come in to ensure every time you’re on time with your bills, your credit score will be immediately enhanced. This is also applicable to rent payments using the Experian RentBureau.